Posted: February 19th, 2023
Using internet resources identify three companies that have recently outsourced part of their value chains. Try to find companies in different industries.
SOLUTION
Let’s take a closer look at each of these companies and their outsourcing agreements:
Nike is a global leader in athletic footwear and apparel, headquartered in the United States. In recent years, Nike has outsourced much of its manufacturing to countries like China, Vietnam, and Indonesia, where labor costs are lower. Nike has also outsourced its logistics and distribution operations to third-party providers.
Pros:
Cons:
Competitive Threat: While outsourcing has helped Nike reduce its costs and improve its supply chain efficiency, it has also made the company more vulnerable to supply chain disruptions and quality control issues. If Nike is unable to address these challenges, it could threaten the company’s competitive capabilities.
Apple is a technology company that designs, develops, and sells consumer electronics, computer software, and online services. In recent years, Apple has outsourced much of its manufacturing to companies like Foxconn, which is headquartered in Taiwan.
Pros:
Cons:
Competitive Threat: Outsourcing has helped Apple maintain its profit margins, but it has also made the company more vulnerable to supply chain disruptions and quality control issues. If Apple is unable to address these challenges, it could threaten the company’s competitive capabilities.
Coca-Cola is a beverage company that produces a wide range of soft drinks and other beverages. In recent years, Coca-Cola has outsourced some of its distribution operations to third-party providers.
Pros:
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